provide Today, our and results. today's quarter description in on year-over-year Jeff, order release to for adjusted the detailed I'll a underlying focus press our of insights X. measures in so please morning, reported Slide on comments our changes everyone. on the refer in you, to first trends Starting Thank earnings business, good my
primarily start mentioned, health. currency Jeff with $X.XXX driven delivering of As constant a growth a X% had increase pet we from the in revenue X% price, strong billion, year by to
our X%, Foreign quarter. in $XX Slide a Slide in by the expectations. revenue slightly region provides quarter above or XX million exchange down our by rates XX revenue headwind and breaks the species provided performance of
grew the $XXX X% in of decline markets the than the which and retail. grew The in at for in international parasiticides overall family several retailers. multi in earlier input growing at million this prescription outs digits, more U.S., including impacted quarter, packaging, supply In Multiple basis, growth challenges impacting constant in declining on vet paper For Seresto international with product, performance ability declined pet X% and constant contributed stock U.S. health, like decline an in while our offset caused currency a the U.S. at by supply generation Advantage by X% to reported the million the cases, double revenue, a items our contributed quarter, we $XXX Globally, chain X%, Credelio some of advantage and for dynamics sales business, currency. led grew
late we resolved be to in the this supply as situation. expect seeing paper improvements second already in We the quarter are
business and the animal the innovation the market pressure On included prices currency, farm side, the some China end for Aqua, and by and in continued in driven the robust from growth at partially constant poultry QX, phasing which and by offset swine quarter. grew market expected improving X%
Aligned after driven XX Slide by price XX in of the generic to cattle decline on for the quarter. our Additionally, a the basis XXXX, XXXX. brands. currency margin of constant performance a compared declined reported our of was key in in in competition growing business impacting with forma several mid-single quarter primarily gross XX.X%, points sales, first pro further adjusted highlights quarter the summarizes first on X% decrease financial global digits XXXX, basis first
$XX largely of inflation approximately While mix price by of was manufacturing million offset other, in approximately the million and each productivity unfavorable impact partially year-over-year offset improvements. $XX
to of sustain productivity price nature and structural their over our benefits improvements, we the Given time. expect
an from ability a constrained family in our margin to a This absorption shortages and our supply well inputs including in to experience advantage and our limited headwind operations providing important labor disruption SKUs. at select expansion of manufacturing several few our efficiently for raw other U.S. supply perspective, created contract our continue We as manufacturing of certain channel, materials as products manufacturers. certain run to gross retail
supply closer working Manufacturing and of SKUs are nearly tirelessly markets. teams our Elanco ever Head our in chain have organization challenges to prioritize supply working and mitigate Urbanek, David his and for for and been customers. than manufacturing to commercial, Quality Our two key years
X% demonstrates Operating manufacturing and continuously year-over-year We disciplined the overhead more inflation are million, $XX compared November's highlights of efficiency, a supply of invest sequentially impact our maintain than in continuing the of of this favorable first execution deeply XXXX. $XXX FX focus relentless strategic ability savings. benefit restructuring reducing key This improvement a to year-over-year. was procurement quarter approximately driving and improving synergies, priorities. quarter million while fourth appreciative while the for our in were to X% costs last quarter and to expenses team's of The offsetting and reduction sustain or X% to
impacted tax Our percentage XXXX, as senior million those to expectations XX% XX for capitalization R&D year rate the year-over-year was in quarter the health reduced going our The in spend we law notes by was $XX EPS decline tax requiring development certain was higher-than-expected XXXX blockbuster by in and our line prioritize this of XX%, of of $X.XX into our investments change last which U.S. the the non-GAAP XX% that first to tax of expense with expectations. R&D effective This approximately XXXX pipeline. tax initial driven a the compared rate by was points. The versus year, quarter, our XX% concentrated pet for driven August. quarter expectations our effective repayment rate approximately the became expenses. by Interest
our the Adjusted of revenue, we declining to the lines change both operating XX quarter profit modest EPS for income $XXX was law both revenue driven reflect basis despite was headwinds full tax the headwind foreign the quarter, inflation the U.S. gross on partly a For from Adjusted in change. the fell EBITDA XX.X% of rates. year, million law. X%, $XXX exchange and in expansion or and was points, representing by now expense of approximately to rate XX% be $X.XX and net this adjusted tax XX% tax expect million the U.S. to
Additionally, the net to the performance quarter. I'll income EPS in our take highlight GAAP positive and opportunity
independent we and the Elanco business, stand with As are company we continue the building the our up. expenses integration GAAP strengthening associated reducing and restructuring,
and network. quarter of in in the are significant shared into the operating Elanco on integrating the last February, integration This third system we As track and XXXX. ERP business is the completed to remains activity process of by processes bear we be legacy the
our but ended on XX-Q the cash We of end We timing metrics sheet expect with to file due billion quarter net move coming balance the to of the at than in of debt, compensation first XXXX higher heavier let's XX. the payments. flow outlays the slightly days, fourth to in quarter and the cash as quarter annual the Slide $X.XX has
million. In was flow ratio first We of expect quarter, less to end operating net a than the X.XX times. our year leverage with cash the negative $XX
we reduce reduction globally, While back-office in had DSOs year-over-year we accounts efficiency. continue a gain liabilities and significant other vendor payables to a as processes continue to
higher to quarter the in year, of first compensation we for full a higher as Additionally, had payments, payments compared and partially the Bear of payments employees due severance having quarter to first legacy of year this bonus XXXX.
with A by in million in of senior this $XXX $XXX XXXX. A of the Finally, we due of million notes tendered outstanding Loan was August of million. refinanced our Term debt by significant Farm $XXX April, portion Credit increasing
we are as foreign Slide outlook revenue, EBITDA and transition rate XX. adjusted May. reflect of Today, adjusted to updating EPS on exchange year guidance for for updated to assumptions our let's XXXX our early Now full
on revenue reported full still is point a X%. $X.X February billion For year, to expect growth from approximately The foreign rates constant a for $XX now million X expected $XXX to now the were and with currency the we $X.XXX full exchange be drag expected of be our year, to now X% projections billion be above percentage growth to between incrementally million year-over-year. headwind impact
in expect of given first in the quarter primarily XXXX, and situations. there's X% in in we impacted the significant or the protective the evolving collectively represented some second our Ukraine less Russia a impact, were In volatile and China, uncertainty but our acknowledge materially Ukraine nature than global results While by quarter of China, COVID-XX not measures do war business.
goods pet April and to despite to consumer country but around in business the In quarter, providing environment has digits, to across impacting in essential animals first momentum into slowed promotional measures With increasingly through are decision and double the care the continue May. operate region, protective the to COVID-XX health access We for and the China, grew health industry challenging stop increased services. our products an our spend. respect
headwinds While in quarter business temporary will a still will result, we some the it nature, for in meaningfully in China second be as health and our foresee believe the pet we grow year.
expect are major cautiously of farm centers to the we animal leading exacerbating indicator gatherings through first the aqua in in prices be about in from just demand in primarily the recovery. On but imbalanced consumption, year. producers half of watching confidence areas side, social key the second remain pork. supply improved service counterbalance including and and improvements in our unprofitable restrictions Sale international population now the are international about China and continue We I several more limiting shared are performance expected and poultry markets, remain contribution potential the expected slope especially to the focus half, to food price in already and a Jeff for described, optimistic expectations, parasiticides. gradual headwinds our brands,
statement. Moving the down income
agenda, inflation. updating We to our structure, We of FX. continued allowing adjusted absorb adjusted to billion adjusted $X.XXX EPS guidance are of improvements execution real EBITDA reflects billion also the of cost $X.XX. our to This now us is for productivity $X.XX to EBITDA which expect delivering increased manufacturing and adjusted impact $X.XXX of and EPS
FX. The the offset the side, sequential the by allow evidenced cost and share us full our EPS higher outside which expectations year the leveraging rate expectations, maintain for to impact operating tax by full On in year-over-year expense expenses in quarter. are are year our our we decline expectations from as count reset of lower base first
second the for of quarter Slide guidance XX. introducing are we on Finally, XXXX
million Slide $X.XX $X.XX. adjusted XX, adjusted we the for expectations line $X.XX a detail midpoint further revenue the $XXX decline and second on quarter, expect At revenue EPS for constant of we've to and million billion currency. are EBITDA the projecting quarter. On guidance of billion, provided and $XXX percentage point our $X.XX at second between We the top X between
in and step-down of growth and innovation X a and manufacturing, primarily decline pressures as result from contract swine a constant quarter-to-quarter our the headwinds, growth of Since of known point in Our in China, percentage Ukraine the to X generic U.S. weakness macro along expected provide known expected portfolio point Russia, initial competitive retail stock and impacting our percentage the business channel guidance an the points year-over-year. offset are headwind business emerging phasing in at aqua a with with of currency, in the percentage outs China February, February in by incremental and X%, the quarter. in X pressures
Additionally, second our U.S. our for marketing in promotional Europe. we parasiticide reminder, as our ramp up as quarter the and is sales and business quarter a the highest investment spend
Finally, the comment XX, expectations on to on I'd in for I some the expected of the X first compared second year. Slide additional like with months. performance X provide wanted second of months the half our context to on XXXX
implied guidance and accelerating growth profitability. includes sales half accelerating second Our
the the across of comparisons pricing the will improvement We acceleration in from China parts restrictions. many increasing the year-over-year in manufacturing. reasons. as second as of our contribution easing contract and from early half of COVID The the finally, accelerate actions unfavorable in the well several year business, that are growth in accelerated The benefit half confident second for of including our innovation;
lower I'll that, acceleration, the expect it capturing we Jeff the year-over-year for profitability hand continue With to expenses back closing back supporting comments. half. to operating Additionally, in
